UPDATE 1-Sprott Resource prices C$45 mln Stonegate IPO

* Proceeds to be used to explore phosphate deposits

* Offering to close on April 28

* Canadian IPOs experiencing increase

TORONTO, April 21 (BestGrowthStock) – Sprott Resource Corp (SCP.TO: )
said on Wednesday its Stonegate Agricom Ltd subsidiary, which
hopes to develop phosphate projects in the United States and
Peru, was targeting at least C$45 million ($45 million) in an
initial public offering within the next week.

Under the offering, which comes at a time when life is
returning to the Canadian IPO market, Stonegate will offer 45
million units at C$1 each.

Each unit will consist of one Stonegate common share and
half of one common share purchase warrant.

Each warrant will allow the holder to buy one common share
of Stonegate at an exercise price of C$1.50 for up to three
years following the closing of the offering.

“The corporation intends to use the net proceeds from the
offering to fund the recommended exploration programs on the
Mantaro project and the Paris Hills project as set out in the
Mantaro Technical Report and the Paris Hills Technical Report,”
Stonegate said in a filing to SEDAR, the Canadian document
filing system for companies.

Stonegate hopes the phosphate deposits, Mantaro in Peru and
the Paris Hills in Idaho, could help it capitalize on rising
fertilizer demand from rich agricultural centers in North and
South America.

Under an over-allotment option, the offering could generate
C$51.75 million in gross proceeds if exercised in full.

Sprott Resource Corp currently owns about 63.7 million
shares, or about 73 percent of Stonegate. It expects to buy a
further 12 million units under the offering, which would leave
it with 57 percent of issued and outstanding common shares
after the offering closes.

Underwriting of the deal is led by GMP Securities and
includes BMO Capital Markets (BMO.TO: ), Canaccord Financial
(CF.TO: ), Wellington West Capital Markets Inc, CIBC World
Markets Inc (CM.TO: ), Dahlman Rose & Co, Global Maxfin Capital
Inc, and Toll Cross Securities Inc.

The IPO is set to close on April 28.

Toronto-based Sprott Resource invests directly and
indirectly in natural resources, through acquisitions, joint
ventures and other investments.

The Canadian IPO market has sprung back to life in the
first quarter of the year after almost nearly two years in the
doldrums, with investors favoring resource-related issues.

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(Reporting by Pav Jordan; editing by Rob Wilson)

UPDATE 1-Sprott Resource prices C$45 mln Stonegate IPO